The majority of banks have already adjusted their serviceability floor rates to 2.50% above the actual rate, as per APRA’s new guidelines.
This means you can borrow more than a month ago. A couple of examples of what this might mean for you:
Scenario 1
Husband and wife earn $80,000 each and have 2 dependant kids. Monthly living expenses are $5,000 per month. They have no debt. Their borrowing capacity has increased by $113,000.
Scenario 2
Husband earns $200k and wife earns $100k. They have 2 dependant kids and their living expenses are $5,000 per month. They have an owner occupied home and an Investment property. They want to upgrade the family home, i.e. they’re buying a 3rd property. Current property debt is approximately $2.1M and they have a $16k credit card (limit), and no other loans. Their borrowing capacity has increased by $221,000.
As of the 25 July 2019, the serviceability rates are as follows:
| Bank | Serviceability rate |
| ANZ | 2.5% higher than the actual rate, or minimum of 5.50% |
| NAB | 2.5% higher than the actual rate, or minimum of 5.50% |
| CBA | 2.5% higher than the actual rate, or minimum of 5.75% |
| Westpac | 2.5% higher than the actual rate, or minimum of 5.75% |
| Macquarie | 2.5% higher than the actual rate, or minimum of 5.30% |
| St. George | 2.5% higher than the actual rate, or minimum of 5.75% |
| Bankwest | 2.5% higher than the actual rate, or minimum of 5.75% |
| Suncorp | 2.5% higher than the actual rate, or minimum of 5.50% |
| Adelaide Bank | 2.5% higher than the actual rate, or minimum of 5.75% |
| Auswide Bank | 2.5% higher than the actual rate, or minimum of 5.75% |
If you have been restricted by serviceability in the past, now might be the time to get in touch and see where your borrowing capacity now sits.
